Canada initiates formal dispute complaint against US at WTO

Canada has initiated a formal dispute complaint against the United States at the World Trade Organization (WTO) over its imposition of import duties on certain steel and aluminium products from Canada.

The trade body which revealed this on Thursday also said that the request was circulated to its members. 

Under the dispute settlement understanding - a legal text which outlines various processes of settling trade disputes at the WTO, “the consultations allow parties involved to clarify the facts of the matter and claims of the claimant. 

“It also serves to either lay the foundation for a settlement or for further proceedings”

Canada claims that the recent measures which terminate Canada’s exemption from additional duties on steel and aluminum products are inconsistent with US obligations under the General Agreement on Tariffs and Trade (GATT) 1994.  

This comes a day after it imposed a 25% tit for tat tariff on US goods including steel, computers and sports equipment. 

U.S. President Donald Trump, speaking to reporters in the Oval Office on Thursday, suggested he was not going to change his mind on tariffs.

"We've been ripped off for years and we're not going to be ripped off anymore. I'm not going to bend at all, aluminium or steel or cars," he said.

He also threatened the EU with a 200% tariff hike on wine exports if it doesn’t remove its tariff increase on American whiskey products in an escalation of ongoing tariff tit for tat. 

The European Union is yet to react to President Trump’s latest tariff threat as the possibility of a global trade war continues to agitate financial markets and raise fears of economic recession.

Meanwhile G7 ministers meeting in Canada have called for a de-escalation of an impending trade war saying that “a trade war is not convenient for anyone”. 

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